Stock fact sheet · data as of
HUTCHMED (China) Limited (HCM): fair value, margin of safety and Wheel Score
Healthcare · Drug Manufacturers - Specialty & Generic · Hong Kong SAR China · ADR · Blend
Is HCM undervalued?
HUTCHMED (China) Limited (HCM) closed at 13.94 on 16 Oct 2026, 376% above the GLS average fair value of 2.93. 7 of the 7 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 7 models disagree widely: Graham Number gives 0.8226 while GLS Growth gives 6.21. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files HCM under Blend.
Nine valuation models for HCM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 0.8226 | -94% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.81 | -58% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.54 | -82% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 6.21 | -55% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1.71 | -88% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 2.28 | -84% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 1.13 | -92% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 6.11 | -56% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 22.78 | +63% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - HCM passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are high - ROIC 34.3%, ROE 37.0%, ROA 26.1% - with debt at 0.08 times equity and a free-cash-flow yield of 0.4%.
HUTCHMED (China) Limited pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Other Collaboration Royalties Revenue 45%, Commercialization Services 30%, Collaboration Research And Development 18% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 34.3% |
|---|---|---|---|
| GLS Moat | 2.8 / 10 | ROE | 37.0% |
| Debt / equity | 0.08 | ROA | 26.1% |
| Free-cash-flow yield | 0.4% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 42: Weak
HCM scores 42 out of 100 on the Wheel Score, in the Weak band (under 50). Value 0/25, Health 13/20, Moat 4/15, Premium 15/20, Stability 10/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 81% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 197 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 52k shares a day on a market cap of $2.4B, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -376% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 15 / 20 | implied volatility 81% | |
| Stability | 10 / 20 | 52k shares/day, $2.4B cap, beta 0.43 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for HCM in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Drug Manufacturers - Specialty & Generic
The 12 companies below are the closest to HUTCHMED (China) Limited by market cap within the Drug Manufacturers - Specialty & Generic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BHC Bausch Health Companies Inc. | 6.31 | 134.93 | +95% | 45Weak | $2.4B |
| SUPN Supernus Pharmaceuticals, Inc. | 40.18 | 46.46 | +14% | 45Weak | $2.3B |
| PRGO Perrigo Company plc | 15.95 | 37.60 | +58% | 45Weak | $2.2B |
| ALVO Alvotech | 5.31 | - | - | 33No options | $1.9B |
| TRLV Trulieve Cannabis Corp. | 9.97 | 27.65 | +64% | 45Weak | $1.7B |
| ANIP ANI Pharmaceuticals, Inc. | 72.28 | 243.25 | +70% | 77Good | $1.7B |
| PAHC Phibro Animal Health Corporation | 37.93 | 43.87 | +14% | 72Good | $1.5B |
| RGC Regencell Bioscience Holdings Limited | 8.11 | 0.0281 | -28765% | 25Weak | $4.0B |
| ETON Eton Pharmaceuticals, Inc. | 51.33 | 15.29 | -236% | 52Fair | $1.5B |
| PCRX Pacira BioSciences, Inc. | 36.40 | 39.44 | +8% | 63Fair | $1.5B |
| INDV Indivior Pharmaceuticals Inc | 33.62 | 56.88 | +41% | 75Good | $4.2B |
| CRON Cronos Group Inc. | 3.20 | 2.96 | -8% | 58Fair | $1.2B |
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Start free See the Sunday ScanQuestions about HCM
Is HCM undervalued right now?
No: at 13.94 the stock trades 376% above the GLS average fair value of 2.93 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of HCM and what does it mean?
HCM scores 42 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for HCM?
2.93 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does HUTCHMED (China) Limited report earnings next?
No upcoming earnings date is recorded for HCM in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does HCM have listed options, and how liquid are they?
Yes. The nightly snapshot found 98 listed contracts with 197 open interest across all expiries and implied volatility of 81% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.